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Judge Kills Allowance for Madoff Bro

Rulings in response to lawsuits also extend freeze to feeder funds

By Rob Quinn,  Newser Staff

Posted Apr 1, 2009 4:37 AM CDT

(Newser) – A appeals judge yesterday nixed a deal that gave Bernard Madoff brother Peter a $10,000 monthly allowance out of his frozen assets, reports the New York Daily News. The ruling, which came in response to a suit from a law student who lost his $500,000 inheritance, prevents him from accessing his fortune to pay his expenses. His outraged lawyer complained that his client can't even buy a cup of coffee.

Meanwhile, a Connecticut judge yesterday extended the freeze on the assets of the Madoff's family—including Bernard's wife, his sons, and his brother—to those of the feeder investment funds that supplied clients, the Wall Street Journal reports. This move came in response to a lawsuit filed by the town of Fairfield, Conn., which lost $15 million in principal invested in the ponzi scheme.

The building where Bernard L. Madoff Investment Securities LLC, have their offices in New York. Peter Madoff was brother Bernard's No. 2 at the firm for decades.
The building where Bernard L. Madoff Investment Securities LLC, have their offices in New York. Peter Madoff was brother Bernard's No. 2 at the firm for decades.   (AP Photo/Diane Bondareff)
Bernard Madoff arrives at federal court in New York Tlast month. A student who lost a $500,000 inheritance in Madoff's scam has successfully sued to freeze Peter Madoff's assets.
Bernard Madoff arrives at federal court in New York Tlast month. A student who lost a $500,000 inheritance in Madoff's scam has successfully sued to freeze Peter Madoff's assets.   (AP Photo/Mary Altaffer)
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My client can't spend a dime, he can’t take a subway ride, he can't buy a loaf of bread, pay his attorneys. - Charles Spada, Peter Madoff's attorney

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COMMENTS
Showing 2 of 2 comments
wwwonderer
Apr 1, 2009 3:38 AM CDT
I wonder what happened the past months where he WAS getting $10,000 EACH month. Your client can't buy a loaf of bread; can't buy a cup of coffee. Can your client get up each morning and GO TO WORK? Can your client do that like many of the victims of his brother? Really? Who's EVER going to feel sorry for the name Madoff, except someone in the Madoff extended family?
jaguarj
Apr 1, 2009 2:43 AM CDT
OH..B-o-o H-o-o!! Poor suckers!!

Peter Madoff loses bid to unfreeze assets
Newsday

Madoff brother made secret asset deal with prosecutors
Bloomberg

 
Ponzi scheme • securities fraud • Bernard Madoff • Bernard L. Madoff Investment Securities • Peter Madoff

 
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